Waystar price target raised to $50 from $45 at Truist

Truist analyst Jailendra Singh raised the firm’s price target on Waystar (WAY) to $50 from $45 and keeps a Buy rating on the shares following quarterly results. The firm had a post-quarterly call with management to discuss margin trends, puts and takes in its 2025 outlook, Change Healthcare impact, among other topics. Waystar highlighted seeing strong RFP activity, demand, and win rates with the cohort of Change clients that were brought onto the platform in 2024. Truist also notes that the company’s raise of its 2025 revenue outlook of $6M at the midpoint was primarily driven by the outperformance in patient volumes. Although the business mix shift towards Waystar’s lower margin patient payment solutions can be a headwind on gross margins, the company is confident in its 40% long-term adjusted EBITDA target, which already factors in any mix shift.